BG5150

This answered my problem EXACTLY! Thanks David!

Why do termianting plans have to restate for EGTRRA? If they have a vaild GUST doc and all of the pretinent amendments, I don't see why they would have to do a full restatement--I would think they are already operating under the proper rules & regs. Any idea why the IRS wants these restated? Is it a money thing; do they want the Determination Letter fees?

yes!

I didn't think the ADP test would have to be run if the plan was a Safe Harbor plan. I had a similar situation, and here's the answer I got from TAG. Corbel gave me a similar answer. Emphasis mine.

I have a plan that was a Multiple ER plan; ie it was adopted by Company A and Company B and no control group or ASG exists between them. In the past, I have tested the two companies separately for ADP/ACP. As of October 2009, allt he EEs in Company B work for Company A, Company B no longer exists. How do I do ADP testing? Do I everyone together? Do I test them separately up until everyone was working for the same company and then test them together? Test separately for the whole year? (It would be better for the test if I did them together.)

We restated a document for EGTRRA and are going to submit it to the IRS for approval. Is this plan exempt fromt he user fee? 401(k) plan less than 100 EE's at least one NHCE initial effective date, 1/1/99 My little chart says it is exempt, but I want to make sure.

Over the past couple days, I've been getting "IPS" errors, or something like that. Says something is wrong w/ the database. Anyone else getting that error a lot?

Can't you post the loan in Relius, run the Top Heavy test and then delete the loan?

If just the hours is a problem, you can override the YTD hours on the Computed Compensation tab

I had someone opt out due to a religious reason. The person was forbidden to keep money in an interest-bearing account or something like that.

It's not automaic. The document must allow for the in-service withdrwal.

Just curious as to why someone would want to still put money in a 401(k) if the rest of the paycheck is being garnished.

Were there any deferrals by the owner?

After 12 months, the "regular" QNEC is not an option. You need 5330 for late refunds. Correction method can be found in EPCRS: http://benefitslink.com/IRS/revproc2008-50.pdf

I think that is correct. EPCRS allows for the QNEC to go to any of these 4 groups: 1) all the NHCE's in the test 2) all NHCE's in the test still employed on correction date 3) all the NHCE's in the test who are still NHCE's for the year of correction 4) all the NHCE's in the test who are still NHCE's for the year of correction and who are still employed on correction date Also, you may not break down the test into component plans; everyone must be tested together. That may change the refund amounts.

I always thought: no hours of service, not in the plan for that year.

To me, as long as you are not re-using the NHCE data 2 years in a row, you should be okay.

And do you have to do an amended 1096? Or does it get added to the current year's?

What is the plan's limitation year? Usually it is the 12 months before the last day of the plan year.

If the plan allows for after-tax contributions in the first place (not necessarily the re-characterization of them) then can't people can do any percentages they want for either deferrals and/or after-tax (within plan/IRS limits of course)? For example, couldn't I do 10% 401(k) and 5% after tax even though I'm not gonna hit $16,500 with the 401(k)? And, for re-characterization, doesn't the plan have to allow participants to make them also before it's allowed?

Make the plan SH Match, and you're good to go and the key ee can max out deferrals, I believe. (As long as there is no other contributions, you'll get the TH "pass") Unfortunately, you'll have to wait until 2011 for that. Are you sure that no one wants to participate? Are there election forms for everyone opting out?

Everyone eligible at the end of the year must get a total Employer allocation of 3% of 415 comp. Or an allocation equal to the lowest allocation of a key employee (if less than 3%).

You can't "slip-sheet" the correction?

Was the request approved by the Plan Administrator by the 20th? I would think the paperwork is not in good order until the PA reviews and signs or otherwise approves it.

And this is an SCP thing, right? It's w/in 2 years.